Commodity Online 

India is weaving a big success story in the cotton fields by merging as one of the major players in the cotton market. To add to this, India has become the second largest producer of cotton in the world for the 2006-07 season, beating the US.

According to reports, India it is all set to retain that position next season starting October.

According to D K Nair, secretary-general of the Confederation of Indian Textile Industry, a series of developments in cotton field have resulted in this achievement.

The main reason being pointed out for this success is the increased use of Bt Cotton by farmers.

While the US saw some cotton areas being switched to grains as the latter's price hit multi-year highs in the commodities market in the last two years, India's cause has been helped by concerted efforts of the Centre, growers and textile industry.

The yield went up considerably and, to some extent, Bt Cotton also helped.

The real increase in production and yield began from that point but Bt cotton helped mainly in cutting down input costs and growers' losses.

Cotton yield has gone up by 65 per cent since 2003. From around 302 kg a hectare during 2002-03, it is up to 518 kg this season. For the next season, according to the US Department of Agriculture, it could be 539 kg.

Bt Cotton's contribution to the total production this season is estimated at 40 per cent and for the coming season, it is projected at 55 per cent.

Indian production this season (Oct 2006-Sept 2007) is estimated at 280 lakh bales of 170 kg (against 245 lakh bales last season) and for the next season, it has been projected at a minimum 300 lakh bales.

In contrast, the US production is projected to decline to 277 lakh bales this season (306 lakh bales) and next season it could dip further to 228 lakh bales.

No other country has improved the yield as India. Yield has gone up because of better crop management practices, reduction of pesticides and other initiatives.

India, in fact, tops the area under cotton at about 90 lakh hectares. Next season, it is projected at 95 lakh hectares. China has 57 lakh hectares under cotton, while the US 42 lakh hectares against 55 lakh hectares two years ago.

Exports next season could be around 65 lakh bales and shipments to China could match that of the US.